Argentina Government Tells Citizens: Declare Your Crypto or Face Extra Taxes
The Argentinian government says citizens can avoid paying certain types of tax on their crypto holdings if they file declarations.
Per Criptonoticias, the government has amended money laundering laws to grant exemptions for Argentines who declare up to $100,000 worth of Bitcoin (BTC) and other tokens.
The new legal change comes with several caveats (and possible hurdles). The tax exemption only applies to people who hold cryptoassets on the platforms of government-registered exchanges and wallet providers.
One of the package’s clauses explains that cryptoassets are considered to be “within Argentina” if they “are managed or held” on an exchange “registered with the National Securities Commission (CNV).” But the media outlet pointed out:
“There are [many] virtual wallets that operate internationally. These are not registered with the [CNV], and many Argentines use them.”
Argentina’s central bank will sell US dollars in the country’s parallel foreign exchange markets starting Monday https://t.co/44vu6fe9xh
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Another potential wrinkle is token valuation. The new document specifies that calculations of the USD value of coins must be accurate “as of market rates of December 31, 2023.”
Alternatively, taxpayers can make token valuations based on “acquisition value” “if they are greater” than the “market rates of December 31, 2023.”
This will pose potential problems for Argentina’s many stablecoin owners. Crypto experts in Argentina have reported that many citizens are hoarding tokens like USDT instead of dipping into “meme coins lotteries.”
As such, the media remarked, “currently in Argentina the market value of [USD-pegged stablecoins] is a much higher price than official rates.”
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